HOME Investment Partnerships Program Tenant …

[Pages:41]July 2021

HOME Investment Partnerships Program Tenant-Based Rental Assistance

Administration Manual

30 South Meridian Street, Suite 900 Indianapolis, Indiana 46204 317.232.7777 (p) 317.232.7778( f) Website:

An amended Administration Manual will be released periodically, and the newest edition overrides all previous editions. Except where otherwise noted, all amendments to the Administration Manual apply to all

awards, regardless of year of funding.

Table of Contents

Section 1: Program Introduction ....................................................................................................... 1 Section 2: Request for Qualifications ............................................................................................... 2

2.1 Eligible Applicants ............................................................................................................. 2 2.2 Application Process............................................................................................................ 2 Section 3: Program Activities............................................................................................................ 3 3.1 Eligible Activities............................................................................................................... 3 3.2 Ineligible Activities ............................................................................................................ 4 Section 4: Participant Selection......................................................................................................... 5 4.1 Eligible Participants ........................................................................................................... 5 4.2 Income Eligibility............................................................................................................... 5 4.3 Ineligibility of Students...................................................................................................... 5 4.4 Participant Selection Plan................................................................................................... 6 Section 5: Parameters of Assistance.................................................................................................. 7 5.1 Length and Termination of Assistance............................................................................... 7 5.2 Payment Standard............................................................................................................... 9 5.3 Calculation of Rental Subsidy and Utility Allowance ....................................................... 9 Section 6: Income Eligibility .......................................................................................................... 11 6.1 Overview of Income Eligibility Requirements ................................................................ 11 6.2 Definition of Annual Income and Determination of Household Size .............................. 12 6.3 Income Inclusions ............................................................................................................ 14 6.4 Income Exclusions ........................................................................................................... 15 6.5 Treatment of Assets.......................................................................................................... 18 6.6 Calculation of Adjusted Income....................................................................................... 19 6.7 Annual Recertification ..................................................................................................... 21 Section 7: Housing Selection and Occupancy Standards ................................................................ 22 7.1 Unit Selection ................................................................................................................... 22 7.2 Housing Quality Inspections ............................................................................................ 22 7.3 Occupancy Standards ....................................................................................................... 23 Section 8: Leasing Documents ........................................................................................................ 25 Section 9: Monthly Reporting and Claims Submission................................................................... 26 9.1 IDIS Report Form............................................................................................................. 26 9.2 Claims Submission Process.............................................................................................. 26 Section 10: Ongoing Monitoring and Compliance.......................................................................... 27 10.1 Homeless Management Information System ................................................................... 27 10.2 Records and Document Retention.................................................................................... 27 10.3 Close-Out Reports ............................................................................................................ 28

10.4 Re-allocation Policy ......................................................................................................... 28 10.5 Award Monitoring............................................................................................................ 29 Section 11: Other Federal Requirements......................................................................................... 30 11.1 A133 Audit and Financial Statements.............................................................................. 30 11.2 Lead-Based Paint.............................................................................................................. 30 11.3 Fair Housing ..................................................................................................................... 32 11.4 Violence against Women Reauthorization Act of 2013 (VAWA)................................... 33 Appendix A: Enrollment Process.................................................................................................... 37

Section 1: Program Introduction

The HOME Investment Partnerships Program Tenant-Based Rental Assistance ("TBRA") Program in its current form launched in 2018 as a targeted effort to increase housing affordability, stability, and choice for formerly incarcerated individuals in Indiana.

An August 2018 report published by the Prison Policy Initiative revealed that individuals who have been incarcerated just one time experience homelessness at a rate almost seven times higher than the general population. 1 In acknowledgment of the unique housing challenges experienced by this population, IHCDA has designed its HOME TBRA program to exclusively serve income-eligible households in which at least one member was formerly incarcerated. Furthermore, re-entry programs increase housing stability and decrease recidivism when they are coupled with a good partnership between courts, supportive services, and housing. Therefore, IHCDA's HOME TBRA program offers rental assistance and supportive services to all program participants while encouraging subrecipients to cultivate positive relationships with community partners.

The HOME TBRA program is a rental subsidy which can provide rental assistance, security deposits, and utility deposits to income-eligible households. The amount of subsidy varies per household and is based on the adjusted income of the household, the rent requested by the landlord, and IHCDA's payment standard. As a "tenant-based" subsidy, the assistance is attached to the household. Households may utilize their assistance at a qualified unit of their choosing, and upon lease expiration may move with their assistance to another rental property, given that their TBRA term of assistance remains active. While the HOME TBRA program does not allow for the provision of supportive services as an eligible cost, IHCDA requires subrecipients to offer supportive services to all program participants to further ensure housing stability.

Note that the HOME TBRA program differs from IHCDA's HOME Rental Housing program: the HOME Rental Housing program provides capital funding for non-profit housing developers to build or preserve affordable housing, whereas the TBRA program provides funding to qualified organizations who in turn provide rental assistance to participating households. TBRA program funds cannot be used as capital funds.

1 Couloute, Lucius. Nowhere to Go: Homelessness among Formerly Incarcerated People. August 2018. .

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Section 2: Request for Qualifications

2.1 Eligible Applicants

Eligible applicants are nonprofit corporations recognized as tax exempt under Section 501(c)(3) of the U.S. Internal Revenue Code, public housing agencies, or units of local government. Current HOME TBRA subrecipients must be compliant with the benchmarks and requirements of its award agreement to request additional HOME TBRA Awards.

2.2 Application Process

A Requests for Qualifications ("RFQ") is released annually to announce the funding and solicit applications from eligible applicants. An eligible applicant (as defined in Section 2.1) may request an amount of funding in the form of a grant from the Indiana Housing and Community Development Authority ("IHCDA") under the Program. The amount of funding available per applicant varies annually. Subrecipients will be selected through a competitive scoring process and may only use grant funds for the eligible activities defined in Section 3 of this administration manual.

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Section 3: Program Activities

The purpose of this section is to provide information regarding eligible and ineligible program activities as described in 24 CFR Part 92.209(a). Eligible activities may be reimbursed by IHCDA following claim submission. Claims requesting reimbursement for ineligible activities will be denied. The subrecipient should send requests for clarification on activity eligibility to the Supportive Housing Analyst.

3.1 Eligible Activities

Rental Assistance ? Rental assistance payments may be made on behalf of qualified households for not more than 24 months. ? The amount of the monthly assistance may not exceed the difference between the established payment standard for the unit size and 30 percent of the household's monthly adjusted income. ? Payments must be paid directly to a third-party on behalf of the household. ? Costs of inspecting the housing and determining income eligibility and assistance level are eligible for reimbursement as either administrative or rental assistance costs. It is at the subrecipient's discretion to determine how to file these claims.

Security Deposit Assistance ? In accordance with 24 CFR 92.209 (j), the amount of HOME funds provided for a security deposit may not exceed the equivalent of two month's rent for the unit. ? Security deposits must be paid directly to a third-party on behalf of the household. ? Any portion of the security deposit which is returned at the end of the lease must be returned to the tenant in the form of a grant.

Utility Deposit Assistance ? Utility deposit assistance may be provided as an eligible program activity only in conjunction with security deposits and/or rental assistance. ? Utility deposit assistance may only be applied to the utilities described in the IHCDA Utility Allowance schedule.

Administrative Costs ? Eligible administrative costs include reasonable costs of overall program management, coordination, monitoring, and evaluation. Review 24 CFR 92.207 (a) for a more complete understanding of eligible administrative costs. ? Costs of inspecting the housing and determining income eligibility and assistance level are eligible for reimbursement as either administrative or rental assistance costs. It is at the subrecipient's discretion to determine how to file these claims. ? Administrative costs cannot exceed 10% of the final award amount claimed.

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3.2 Ineligible Activities

? Program funds may not be used to assist a resident owner of a cooperative or mutual housing unit when that resident is recognized by state law as a homeowner.

? Program funds may not be used to prevent the displacement of tenants from projects assisted with HOME Rental Rehabilitation Program funds.

? TBRA cannot be used to duplicate another form of assistance. For instance, if a tenant receives a rental subsidy that lowers their rent to 30% of their adjusted income, such as a Housing Choice Voucher, they cannot receive additional HOME TBRA.

? Program funds may not be used to pay rental arrears. ? Program funds cannot be used to pay for the down payment in a lease-purchase program,

although it may be used as a rental subsidy. ? Program funds cannot be provided to homeless persons for overnight or temporary shelters,

as a valid lease is required for program enrollment.

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